Canada: The next real-time payments powerhouse

Canada’s payments ecosystem is entering its most decisive transformation in decades. Long dominated by cards and electronic funds transfers, the market is now moving toward faster and more secure ways of moving money. Regulators are opening the system to more players while laying the groundwork for new players in real-time settlement and stablecoins.

These changes reflect both domestic and global forces. At home, consumers expect greater speed and transparency, while businesses want lower costs and simpler integration. Abroad, cross-border trade, migration, and tourism are shaping expectations for seamless international money movement.

As a G7 economy with strong ties to North America, Asia, and Europe, Canada’s modernisation will influence both local commerce and its role in global financial flows. For banks, payment service providers (PSPs), and merchants, the challenge is to adapt quickly while delivering the smooth, reliable payment experiences customers now demand.

Ecommerce driving payments in Canada

The Canadian ecommerce market is a major driver of payments transformation in the North American nation. The total market value is projected to reach $66.4 billion in revenue in 2025 with social and mobile commerce driving much of the growth, accounting for over 55% of online sales. 

However, banking interchange fees remain a friction point, especially for small merchants. This is driving interest in alternative acceptance methods like account-to-account (A2A) payments, pay-to-QR codes, and mobile wallet payments. Canadian merchants are increasingly trialling A2A at checkout, particularly for higher-value purchases where real-time confirmation and lower fees are attractive. For many, this shift both reduces payment costs and accelerates settlement, improving margins while preserving a customer experience.

The massive changes in the business, ecommerce and consumer landscapes will shape how the country utilises real-time payment regulations, stablecoins, remittances and mobile wallets.

Evolving regulations accelerate real-time payment adoption

2025 marks a turning point in Canadian payment regulation. The Retail Payment Activities Act (RPAA), introduced in stages, is reshaping how PSPs operate. Registration with the Bank of Canada has already begun, but the full supervisory, including risk management obligations and safeguarding of end-user funds, will take effect on 8 September 2025. At the same time, amendments to the Canadian Payments Act will also open Payments Canada membership to non-bank PSPs and credit unions, giving them direct access to national rails for the first time. 

Launching in late 2025, the Real-Time Rail (RTR), Canada’s first national instant payment system will deliver instant, 24/7 credit transfers between Canadian financial institutions in seconds with near real-time settlement. The RTR is a new piece of national payment infrastructure that will allow Canadians to send and receive irrevocable, data-rich payments in real time. Built on ISO 20022 standards, the RTR will allow more information to travel with each payment, opening opportunities for smarter, faster services such as richer invoice data for businesses and enhanced bill payment options for consumers.

In the meantime, Interac e-Transfer, Canada’s most widely used A2A system, remains the backbone of real-time payments. While e-Transfers began as a peer-to-peer tool, adoption is expanding rapidly into business use cases, including payroll, supplier payments, and refunds.

However, for financial institutions, using Interac rails for cross-border transactions adds extra responsibility. Domestic banks act as the actual sender in these transactions, which increases their direct accountability to regulators. This makes compliance and servicing money service businesses (MSBs) much more complex. Moving transactions onto Interac is both a technical integration and a test of how well banks can meet strict Canadian standards for compliance and risk management.

Together, RTR and Interac will accelerate A2A adoption across retail and business payments and create new opportunities for Canadian banks, PSPs, and fintechs to develop competitive services, improve liquidity management, and expand participation in the global payments ecosystem.

Canada’s first steps towards stablecoin settlements

Stablecoins are gaining popularity in Canada as regulators and innovators define their role in payments. The Canadian Securities Administrators (CSA) categorise stablecoins as securities or derivatives, requiring issuers to comply with reserve, disclosure, and custody standards. This results in stricter conditions than in the U.S. or EU, where stablecoins are mainly regarded as payment tools.

Despite these challenges, adoption is increasing. Stablecorp’s QCAD, a Canadian-dollar-backed stablecoin, raised $2.5m from major investors including Coinbase earlier this year, signalling confidence in CAD-denominated digital currency. CADX, supported by $36 million in Canadian assets, has launched as a regulatory-compliant payment option.

Usage is increasingly appearing in real-world cases, with companies testing CAD stablecoins for on-chain payroll and payments to remote workers. These examples demonstrate the potential of stablecoins to lower costs and improve speed in both remittances and B2B transactions, assuming regulation continues to develop.

Remittances: A lifeline for Canada’s global workforce

Remittances from Canada reflect the country’s increasingly diverse and mobile workforce. In 2024, Canadian residents sent an estimated $851m abroad, up from $847m in 2023. These outflows highlight the strong financial ties that residents maintain with families and communities overseas.

Speed and transparency are becoming increasingly important for remittances, especially among younger consumers who send money more frequently. A survey by Payments Canada found that one in five Canadians sent money internationally through their Canadian account, a 33% increase from the previous year. 

As global travel accelerates, Canadians expect to pay seamlessly abroad using local payment methods. Integrating QR-code and mobile-wallet acceptance into Canadian banking or fintech apps can support this preference and reduce reliance on cards in markets where card use is limited.

Gen Z leads Canada’s mobile wallet surge

Canada’s mobile wallet ecosystem is surging, with a total market value of $1.39 billion in 2024 and projected to reach $20.48 billion by 2030. This growth reflects rising consumer adoption of embedded digital and mobile-first payments.

Mobile wallet payment usage rose among Canadian adults from 37% in 2022 to 45% in 2024. The strongest uptake is among younger Canadians: 69% of Gen Z adults now use mobile wallets regularly, compared to 60% of Millennials, 44% of Gen X, and 27% of Boomers.

Mobile wallet transactions are fast becoming a core channel in Canadian retail and ecommerce. For merchants and PSPs, the imperative is clear: integrate mobile wallet acceptance seamlessly across digital and in-store channels to meet consumer expectations. This consumer-driven demand for instant, digital-first payments also lays the foundation for innovation in B2B payments, where automation, rich data, and speed are becoming essential.

Canada’s payments future: Bridging local rails with global networks

From the expansion of ecommerce and mobile wallets to the arrival of the Real-Time Rail and stricter oversight under the RPAA, Canada’s real-time payments is entering a new era of speed, trust, and choice. Its position as a G7 economy with deep trade, migration and cultural ties to North America, Asia, and Europe makes its payments modernisation globally significant.

At the heart of this transformation is an ecosystem moving toward real-time, multi-rail and data-enriched payments. These qualities align with the principles of Thunes’ Direct Global Network, which connects over 130 countries to enable real-time, cross-border transfers through trusted local partnerships. From remittances and ecommerce to B2B transactions and stablecoin settlement, Thunes supports Canadian banks, fintechs and PSPs as they connect to the rest of the world.

By bridging Canada’s modernising payment rails with global reach, Thunes helps money move faster, safer and more transparently, whether for a Canadian resident sending money overseas, a small business paying suppliers, or a global payment provider expanding into new markets.

Looking to extend your reach in Canada and beyond? Contact us to learn how Thunes is expanding the smart superhighway that moves money around the world.